Tag Archives: transition

ISV to Cloud Transitions: The Saga Continues

What is Happening?

On 29 September, Tibco, a provider of middleware / infrastructure and business intelligence software, agreed to be bought by Vista Equity Partners for approximately US$4.3 billion. Saugatuck sees this as another proof-point resulting from the expanding adoption of cloud-based offerings. Traditional software providers (ISVs) are experiencing formidable challenges and mixed success in transitioning their businesses to the realities of cloud application development, delivery, and purchase.

Why is it Happening?

For seven years Saugatuck has published research focused on the motivations and challenges traditional ISVs face in transitioning to cloud-based offerings. Some of those challenges have been mitigated over time; today more usage-tracking and customer billing alternatives with richer functionality and more readily available best practices for structuring cloud-based development are available. However, some challenges remain. It is Saugatuck’s belief that Vista’s decision to take Tibco private is likely a reaction to two of these remaining challenges: Continue reading

Further Guidance for the Continuing ISV Cloud Business Transition

At the end of October, Saugatuck published a guidance report for clients that identifies, and provides critical management guidance regarding, key business challenges faced by ISVs as they transition over time to become more Cloud-enabling, and typically more Cloud-centric, in their technology and business. That report (1282SSR, Managing Challenges and Transitions: Best Practices for ISVs on Cloud Journeys, 31Oct2013) is available to Saugatuck subscription research clients by clicking here:  http://bit.ly/1gReKvb

Briefly, the six key areas that ISVs need most be concerned with – and be able to manage effectively over time – are as follows: Continue reading

Nelson Mandela – Memories of a Moment 15 Years Ago

Nelson Mandela. What a loss. What a truly amazing person, who changed the world. While I never met him, I thought I would share a short personal story in which I bore witness to the improbable but amazing transition that has occurred in South Africa over the past twenty plus years.


Back in the mid-to-late 1990s, when I worked for Gartner, I regularly traveled the globe. Among these adventures were two business trips to South Africa – both times visiting Cape Town and Johannesburg (and during one of them, a fun side trip to Kruger National Park). On the second of these trips – I think it was in 1998 or 1999 – I was invited to join a planning meeting with senior IT leaders for Transnet, one of the largest companies in South Africa (and owner of the country’s ports, railways, and pipeline infrastructure).

Frankly, it was an honor to participate in that 2-hour meeting, which ended up being the kickoff for the transition of leadership in that huge company’s IT organization. The seating in the boardroom was set up in a Continue reading

SAPPHIRE 2013: SAP is HANA, HANA is SAP, and the Enterprise Software Future is Not the Past

What is Happening? 

If it’s May, Saugatuck must be participating in SAP’s annual Sapphire user and partner event. And if we’re talking about SAP, we must be talking about what they said they would do, and what they have actually done.

Here’s what we said last May about SAP, Cloud, and the company’s business model:

In a few years, we could be looking back on Sapphire 2012 as a watershed moment, as the dominion of legacy business management software moves to the Cloud. If SAP is serious about Cloud, and we believe it truly is, then they can/should/will legitimize Cloud for business management software. I joked with several analysts, media members and SAP executives at the event that “OK, we can stop calling it ‘Cloud’ and start calling it ‘business IT’.” Continue reading

Considering or Transitioning to Cloud-based Big Data? Stay Practical

Saugatuck’s research among user enterprises includes a fast-growing number of Big Data analytics projects, which are still mostly trials, PoCs, and other relatively limited, mostly conceptual instances – but with significant portent and potential. And too often, we see the leaders involved in planning and delivering these projects move from getting the basics in place to leaping forward well ahead of the immediate needs and practical business goals. They fail too often to stick with the practical needs and considerations – partly because these projects are new with unknown requirements, partly because they are swept up in possibilities and potential. Risk (including scope creep, cost, security exposure, resource hogging) too often begins to outweigh reward and reality, because so much of the risk is new, unseen or under-appreciated. Continue reading

Transition Success or Failure in the Cloud: Executive / Financial Challenges

As Cloud adoption continues to accelerate this year, Saugatuck has initiated a focused research program to refresh and expand our research in ISV Cloud transitions. The first wave of these transitions was rather uneven in results with notorious failures and many expensive lessons learned. Moreover, this research will reflect the evolved set of issues and challenges brought about by the shift to the Boundary-free Enterprise™. This applies equally to pure-play Cloud ISVs entering the market as well as traditional ISVs evolving their offering portfolios with new Cloud solutions.

Today’s Cloud platforms are far superior in enabling ISV Cloud transitions and their ongoing operations. Nevertheless, those significant business challenges do remain both for pure-play startups as well as established on-premises ISVs transitioning, primarily in these seven areas: Continue reading

Cloud ISV Transition Strategies – New Challenges, New Best Practices

What is Happening?

As many of our readers know, for the past seven (plus) years, Saugatuck has been researching ISV and Master Brand transitions into the Cloud with SaaS, PaaS and IaaS offerings. Our earliest research was based on dozens of interviews with pure-plays and on-premises providers, and we have continued to reach out over the years to identify the most significant challenges that transitioning vendors face and the best practices they use to ensure success in the markets they are pursuing. Continue reading